A solid rebound in American manufacturing, especially vehicles, following two months of declines, help push overall industrial production up in July, the Federal Reserve said Tuesday.
A massive 6.6% surge in motor vehicle and parts production was a key driver the 0.7% rise in manufacturing, which was the biggest gain since March, the data showed.
That boosted total industrial output by 0.6% last month, which was double the consensus forecast among economists.
The gain contrasted with the massive decline in a regional survey by the New York Fed for the first week of August, which briefly spooked investors on Monday.
"Manufacturing activity is cooling, but retains some momentum; no indications of a massive pullback," said Gregory Daco, chief economist of EY Parthenon.
"I'd downplay the huge drop in the Empire State survey & focus on the ISM readings pointing to cooling activity," Daco said on Twitter, referring to a nationwide survey that showed a slowdown but continued growth last month.
Mining production also rose 0.7%, on "gains in coal mining and in oil and gas well drilling," while utilities fell 0.8%, the Fed said.
Overall production was 3.9% higher compared to July 2021, while manufacturing has risen 3.2%, the report said.
Industrial capacity in use edged back over 80%, to 80.3%, after slipping below that threshold in June.
Copyright 2022, Agence France-Presse
